The media and entertainment industry has experienced significant change as a result of technology innovation. Whereas content used to arrive through predictable and controlled channels, content delivery is now diffused across time, devices, and formats. Bits are free-flowing commodities (depending on Net Neutrality regulations), and thus, over-the-top distribution is a necessary addition to the media landscape if content providers wish to capture revenue currently disappearing into torrents and pirated live streams.
With delivery modes fragmenting, content producers no longer need to fit into linear parcels of the two-sided album or the 22-episode season. The media industry is seeing self-published e-books, digital music, podcasts, and videos produced by shoestring superstars, while major studios release multi-million dollar productions for instant binge-watching or day-and-date cross-channel availability.
The funding models for digital media vary, but advertising opportunities are evolving every bit as quickly to embrace the benefits of consumer customization. Consumers are exchanging their information and their funds to gain access to content, which in turn is producing a wealth of customization opportunities.